Statements 16

Sammy Welcomes Government U Turn On Self Employed Tax

Sammy has welcomed the Government’s sudden U-turn on the increase in National Insurance Contributions for the self employed announced a week ago in the budget.
On behalf of the DUP I had spoken against this last week and the Government clearly knew it could not depend upon our support to help counter the rebellion within its own ranks.
Speaking in the House of Commons today Sammy :
The 130,000 self employed in Northern Ireland who make up 15% of the workforce will welcome this change of heart by the Government. However the budget contains other measures which adversely impact on the self employed including the requirement to submit quarterly tax returns delayed for one year and the closure of the flat rate VAT system.
Instead of targeting the millions of genuinely self employed who have set up small businesses and contributed to today’s encouraging unemployment figures which are the lowest since the 1970’s, the Government would do better to concentrate its attention on those large corporations such as the BBC which abuse self employment contracts in order to evade tax.
While it is true that self employed pay lower National Insurance Contributions than those in employment, they qualify for fewer benefits, take greater risks, do not have paid holidays, are disadvantaged when sick so the tax differential for genuinely self employed is justifiable. Those such as BBC presenters, some consultants in large practises etc who are in secure employment but are classified as self employed so that they and their employers pay less tax should not be afforded the same rights and the Government could raise increase revenue by stopping these abuses.


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